RY - Royal Bank of Canada

NYSE - NYSE Delayed Price. Currency in USD
+0.46 (+0.57%)
At close: 4:02PM EST
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Previous Close81.27
Bid0.00 x 1000
Ask0.00 x 2900
Day's Range80.81 - 81.73
52 Week Range73.19 - 82.58
Avg. Volume882,211
Market Cap117.397B
Beta (5Y Monthly)1.03
PE Ratio (TTM)13.00
Earnings DateN/A
Forward Dividend & Yield3.16 (3.89%)
Ex-Dividend DateJan 22, 2020
1y Target EstN/A
  • Merkel, Mnuchin Diverge on Generation Thunberg: Davos Update

    Merkel, Mnuchin Diverge on Generation Thunberg: Davos Update

    (Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.The rich and powerful are in Davos, Switzerland, for the World Economic Forum’s 50th annual meeting, and the gathering is being closely watched to see how the global elite aims to tackle problems they helped create, above all climate change.Germany’s Angela Merkel called on world leaders to work together to fight global warming and take the views of concerned young people seriously, saying time is running out to protect the planet.U.S. Treasury Secretary Steven Mnuchin, meanwhile, questioned whether Swedish activist Greta Thunberg is qualified to talk about economic issues linked to climate change and told 17-year-old to go and study the subject in college.Thunberg has called a climate strike for Friday at 11 a.m. local time near the forum.To get all the highlights delivered to your inbox, sign up for the Davos Diary newsletter. Here’s the latest (time-stamps are local time in Davos):RBC Says Fossil Fuels Necessary in Green Shift (5 p.m.)Royal Bank of Canada Chief Executive Officer David McKay said any shift to a more climate-friendly economy still depends on fossil fuels.“We have a longer-term transition as we change the energy source, we move to a greener economy, but it is a transition,” McKay told Bloomberg TV. “You need fossil-based fuels to make that transition -- they’re not going away overnight.”U.S. Has ‘Perfect’ Justification for Auto Tariffs: Ross (4:35 p.m.)The U.S. wants to negotiate a trade deal with the European Union but will apply tariffs on car imports from Europe if deemed necessary, according to Commerce Secretary Wilbur Ross.“We have a perfect justification to put tariffs on if we wish to,” Ross said in a Bloomberg TV interview. “The president had decided it was better to negotiate. We’ve had very constructive negotiations with the German car manufacturers, with the Koreans and with the Japanese.”“If people do silly things, if they do protectionist and discriminatory things like the pillar one of the digital service tax, we’re obviously going to respond,” Ross said, referring to plans by France. “The clear intent was to be discriminatory. We have other laws that also enable us to retaliate against discriminatory behavior. If there is discriminatory behavior, we will fight back.”Booms and Busts Are Not Dead: Solomon (3:25 p.m.)David Solomon, the chief executive officer of Goldman Sachs Group Inc., said the U.S. economy is “in good shape” and Davos delegates he has spoken with are generally upbeat about the outlook for this year.“I would say that there will be booms and busts again at some point, although I don’t see one anytime soon,” Solomon told Bloomberg TV.“I’d say I see and I hear what I call kind of a confident, middle-of-the-road view of the current economic environment,” he added. “The overwhelming likely scenario is that the economy chugs along this year.”Merkel Says Recession Danger Receding (3 p.m.)The danger of Germany slipping into recession is receding thanks to an easing in tensions between major global trading partners, Merkel said.“I think we should be happy that the first phase of a trade deal between the U.S. and China has been agreed,” she said during a Q&A session after her speech.“With each step -- an orderly British exit from the European Union, with trade deals and no trade war, less protectionism -- we are reducing the danger of a recession,” Merkel added. “At a time when we have a lot of trade conflicts, you see that global economic growth slows.”Europe can contribute to growth and stability and foster confidence in the euro by completing the integration of its banking system and capital markets, the German leader said.Merkel Rejects Excluding Suppliers from 5G (2:55 p.m.)Excluding individual suppliers, like China’s Huawei Technologies Co., from fifth-generation mobile networks would not necessarily make them more secure, Merkel said.“I don’t think I make myself particularly secure if I shut out an entire supplier and don’t know how they are developing,” she said during a Q&A session.“To be honest, we have already dealt with spying and industrial espionage in former times, and in that sense I wouldn’t change the equipment completely,” she added. “But we do have to be careful.”NATO Chief Urges Europe, U.S. to Stick Together to Meet China Challenge (2:50 p.m.)China’s rise makes it even more important that Europe and the U.S stay together, NATO Secretary General said in a Bloomberg TV interview, in a thinly-veiled plea for a de-escalation in the transatlantic trade spat. As long as Europe and the U.S. cooperate “then we are safe and secure” and can meet any potential challenge, Jens Stoltenberg said.“There are opportunities, but also some challenges, because China is now the second largest defense spender in the world and they are investing heavily in new very advanced weapon systems,” Stoltenberg added.NATO’s chief stopped short of calling China a strategic adversary or calling for an outright ban of Chinese companies from the procurement of 5G network equipment. He did, however, warn that a cyber attack against an ally could trigger NATO’s collective defense clause, which obliges all member states to respond to the attacker.Standard Chartered Says Anxiety “Very High” Over China Virus (2:50 p.m.)Standard Chartered Plc is taking extra precautions to protect Chinese staff from an outbreak of the SARS-like coronavirus, according to Chief Executive Officer Bill Winters, who had intended to travel next week to Wuhan, a city that has been locked down by authorities trying to halt the spread.“When someone gets a cold now, question is whether it’s something much worse,” he said in a Bloomberg TV interview. “We are staying close to our clients and helping them understand exposures.”The bank is “identifying working capital needs if things progress as they have done over the past 24 hours,” given that “tourism and transportation industries are at some risk coming into Chinese new year”Tackling Climate Change ‘Matter of Survival’: Merkel (2:45 p.m.)German Chancellor Merkel said meeting emissions-reduction goals could be a “matter of survival” for Europe and young activists pushing for change should be taken seriously.“The question of achieving the Paris Agreement goals could be a matter of survival for the whole continent and that is why there is pressure to act,” Merkel said in a speech. “Time is pressing, and we must be careful as the older members of society that we treat the impatience of youth in a positive and constructive way.”The German leader said she was concerned about the conflict between campaigners for a cleaner planet and those who don’t believe in global warming. She said the scientific evidence is clear, and emotions should not be confused with facts.Mitsotakis Says Turkey-Libya Deal Unacceptable (2:34 p.m.)Turkey’s maritime border agreement with Libya is unacceptable and illegal, Greek Prime Minister Kyriakos Mitsotakis said, amid growing tension in the eastern Mediterranean.“Turkey has been difficult to deal with,” Mitsotakis said in a Bloomberg interview. “There’s a constant state of provocation, which leads Turkey nowhere.”“We don’t need Turkey’s permission” to supply Europe with Cypriot, Israeli or potential Greek gas, Mitsotakis said earlier in Davos. The pact signed by Libya and Turkey has an impact for the planned EastMed pipeline project, he said.Time is ‘Worry’ in EU, U.K. Trade Talks: Dutch PM (1:45 p.m.)The clock is ticking for the EU and the U.K. to hammer out a trade deal by the end of the year, according to Dutch Prime Minister Mark Rutte.To agree on a trade deal “we need to agree on level playing field and all the other issues,” the Dutch leader said in a Bloomberg TV interview. “It’s an awfully short amount of time so I hope that coming next summer, June, July, that Boris Johnson will at least contemplate extending, if necessary, this transition phase.”Coming to an arrangement is “very difficult and there is still the risk that you will have a cliff edge scenario’ like we had experienced last year.”U.S., China Must Adjust for Stable World: Singapore PM (1:30 p.m.)Both the U.S. and China must make adjustments if they are going to reach a lasting phase-two trade deal that benefits the rest of the world, according to Singapore Prime Minister Lee Hsien Loong.The U.S. must decide whether to create rules that allow “the best man” to win or only let America come out on top, Lee said in an interview with Bloomberg’s Editor-in-Chief John Micklethwait.“America First means you do the best for the United States,” Lee added. “So do you do the best by prospering in the world, and there are other countries who are doing well, or do your best by being a big country in a troubled world? And I’m not sure that the second is a very good answer.”Maersk Sees Flat Global Trade Growth in 2020 (1:24 p.m.)Global trade will likely expand in line with 2019’s growth of “slightly less than 2%,” A.P. Moeller-Maersk A/S Chief Executive Officer Soren Skou said in a Bloomberg TV interview.The reason why freight rates have “gone up quite substantially” since October is mainly the introduction of new more environmentally friendly fuel. “Many of our customers recognize that it’s good for everybody that we go to a cleaner fuel,” Skou said.Trump Policies Good for Business, Moelis Says (1:21 p.m.)U.S. President Donald Trump’s policies and deregulation moves have been good for business and generated “substantial rewards,” Moelis & Co. founder Ken Moelis said in a Bloomberg TV interview.Trump has done a good job of telling the story of how the U.S. economy is booming, with low unemployment, Moelis said, adding that despite “a lot of hand-wringing” in the U.S., the country remains a “tremendous place” with great laws, great capital markets and innovation.Men’s Hiring Bias Slammed by Finnish PM (1:04 p.m.)Finnish Prime Minister Sanna Marin said it’s now clear that women need laws to protect them from discrimination in the work place and the issue can’t be left in the hands of the private sector.“You need laws and structures that lead the way to gender equality,” 34-year-old Marin said during a panel debate. “It doesn’t just happen by itself.” The concern is that an unconscious bias kicks in, steering men in a position to hire toward “similar-minded and similar-looking people” who are deemed to be “more qualified.”Dutch Finance Minister Says Brexit Risks EU Power (1 p.m.)After Brexit, the EU risks becoming a weak player in global politics, because the U.K.’s departure offsets the bloc’s balance, according to Dutch Finance Minister Wopke Hoekstra.“When there is a balance between France, Germany, and the U.K., we in the Netherlands are at ease,” Hoekstra said in a Bloomberg TV interview. “That balance is now gone, and for the European Union, both in economic terms, but also in geopolitical terms, Brexit is very bad news.”Saudi Arabia Must Act on Emissions: Minister (12:30 p.m.)Saudi Arabia must advocate for solutions to tackle climate change as one of the world’s largest energy producers, according to Energy Minister Abdulaziz Bin Salman.“We cannot sit on our hands as a producer without advocating for something that brings a solution to the emissions issue,” he said during a panel discussion. “We can’t see all components of sustainability and market stability without also being involved in the other debate which has to do with climate change.”Facebook Says Bezos Hack May Highlight Phone Vulnerabilities (12:13 p.m.)The hack of Amazon.com Inc. billionaire Jeff Bezos’s phone, allegedly via a WhatsApp message, brings to light potential security weaknesses in smartphone operating systems, according to Facebook Inc. Vice President Nicola Mendelsohn.The company would take allegations that its service was used in a hack very seriously and would look into it, Mendelsohn, who helps run Facebook’s Europe, Middle East and Africa business, said in a Bloomberg TV interview.The Idea of a Waste-Free Global Economy Is Catching On (11:50 a.m.)When British yachtswoman Ellen MacArthur was promoting the idea of the circular economy on the sidelines of Davos in 2012, the big attraction was curiosity about what she was up to after her sailing career.Eight years on, firms such as Adidas AG, Unilever NV, and BlackRock Inc. are embracing MacArthur’s vision. Her foundation is pushing an economic system where product lifespans are extended and components used repeatedly. The idea is to replace the “linear” model of growth -- extraction, production and disposal -- and reduce the strain on the planet’s limited resources.“We had our own event in one of the hotels, and to be honest most people came because they were intrigued about what I might be doing,” said MacArthur, who once held the world record for the fastest solo circumnavigation of the globe. “Things have changed enormously since then.”Deutsche Bank Expects ECB Review to Be ‘Constructive’ (11:07 a.m.)Deutsche Bank AG Chief Executive Officer Christian Sewing is “hopeful” that the planned strategy review by the European Central Bank will lead to change.The ECB’s decision to cut interest rates below zero was right at the time, but “we missed the exit,” he said on a panel. Negative rates are leading to a widening gap between winners and losers as only a small share of the population benefits, Sewing said, adding that monetary policy is “reaching its limits.”U.S.-Europe Risk Trade Flare-Up Over Cars, Digital Tax (10:43 a.m.)The U.S. and Europe looked set for a renewed clash over everything from car tariffs to digital taxes in a sign that a new American focus was emerging following President Donald Trump’s trade truce with China.Commerce Secretary Ross said the U.S. was still considering slapping levies on European auto imports even as it hopes for a “peaceful resolution” of differences. Mnuchin declined to say if he was still pushing for an optional digital tax after an agreement for a global framework was reached with France on Wednesday.Mnuchin Tells Thunberg to Go to School (10:35 a.m.)Mnuchin questioned whether Thunberg is qualified to talk about economic issues linked to global warming.Asked at a press conference to comment on the debate over the economics of climate change spurred by the teenager, Mnuchin quipped: “Is she the chief economist?” He then said: “After she goes and studies economics in college, she can go back and explain that to us.”Mnuchin has repeatedly clarified the U.S.’s climate stance after Trump took a swipe at environmental “alarmists” in his speech Tuesday. “There’s a misinterpretation as to what our view is,” Mnuchin said. “The U.S. administration very clearly believes in clean air and clean water.”Canada in Strong Fiscal Position: Morneau (10:30 a.m.)Canadian Finance Minister Bill Morneau said low interest rates mean central banks have less room to maneuver and suggested fiscal policy needs to play a greater role in addressing economic challenges.“I think we have to be realistic” about expectations of central banks, Morneau said in an interview with Bloomberg TV. “Their ability to be effective in the case of challenges is different than it was in the last real challenge.”Canada is managing its “fiscal framework very well,” which makes it “resilient in the face of challenges,” Morneau added.“What we see is that Canada has taken a very responsible approach,” he added. “Whether you’re a rating agency or someone looking at our ability to deal with financial issues or concerns, we’re in a particularly strong position. Probably the strongest position among G-7 countries because of our very strong balance sheet to start with.”Allow Venezuela to Unleash Its Potential: Guaido (10 a.m.)Juan Guaido, Venezuela’s opposition leader, called for a return to democracy in the South American nation so that it can fully exploit its oil reserves and “unleash” its potential.“What we want is a free Venezuela, a democratic Venezuela which respects human rights, where you can invest, where we can also make the most of our oil reserves and so that we can really unleash the potential that we have,” Guaido said in a speech. “We want to mobilize people despite the terror unleashed by the dictatorship.”Nigeria Says OPEC Ready to Cut Further (9:49 a.m.)OPEC’s production cuts are enough for now to avoid an oversupply, but ministers will convene again in March and will be ready to make further cuts if necessary, Nigerian Minister of State for Petroleum Resources Timipre Sylva said in a Bloomberg TV interview, adding that the country would like to see oil prices between $60 and $70 a barrel.“We see a lot of optimism in the market” amid easing of trade tensions between U.S. and China,” Sylva said. “If the U.S. and China are able to consummate a good deal at the end of the day, we expect that there’ll be demand growth.”Cantor’s Jain Concerned by Negative Rates (9:38 a.m.)Cantor Fitzgerald LP President Anshu Jain said there are long-term adverse consequences linked to investing in trillions of dollars of negative yielding debt.“If you wind up investing at negative yields in effect locking in a loss, that will have repercussions,” Jain said in an interview. “Of greater concern for me is repercussions for insurers and pension funds, and these will be felt for years to come.”Italian Coalition is Stable, Gualtieri Says (9:20 a.m.)The stability of Italy’s ruling coalition will not be affected by Foreign Minister Luigi Di Maio stepping down as head of his party, according to Finance Minister Roberto Gualtieri.“Di Maio will remain the foreign affairs minister and the parties have said they are strongly committed to the stability of the government. So nothing will change,” Gualtieri told Bloomberg TV.“What we can have is a continuation of this alliance or a strengthening of this alliance, these are the only two options,” he added. “We have very strong numbers in the parliament in both chambers and the government will continue until the end of the legislative term.”Kaeser’s Wish for Trump: Listen to the Kids (8:45 a.m.)At a Tuesday dinner that Donald Trump held with business executives, Siemens AG Chief Executive Officer Joe Kaeser said he told the U.S. president he had three things to say: a compliment, a request, and a wish.The compliment was on how Trump has spurred U.S. Economic growth. The request was for Siemens to be treated like a U.S. company on government projects because of its 50,000 American workers. His request was to urge the president to listen to young people’s demand to protect the climate.“They may not be able to help us. They’re young people -- they have a problem and they don’t know how to solve it, but shouldn’t we bring them to the table,” Kaeser said he told Trump, adding that his daughter Ivanka Trump responded that it was something that they might look into.Merkel Succession Team to Be Decided This Year (8:42 a.m.)Germany’s Christian Democrats want to assemble their team to succeed Chancellor Merkel by the end of this year, the party’s chairwoman said in a Bloomberg TV interview.Annegret Kramp-Karrenbauer, who is also Merkel’s defense minister, said that now isn’t the time for a cabinet reshuffle as proposed by a party ally earlier in the month.“For 2021, the CDU needs a new team for the future, with new faces, and we’ll put that in place this year. For me, that’s a more important perspective than a short-term change,” she said.Debt Buildup Reaching Danger Point: Georgieva (8:40 a.m.)IMF Managing Director Kristalina Georgieva warned that debt in some countries is at dangerous levels.“The buildup of debt is reaching a point where for some borrowers it’s a present danger -- for example poorer countries,” Georgieva told Bloomberg TV. “43% of low income countries are already at or close to debt distress.”Low interest rates “means high, high appetite for yield,” Georgieva said, adding that “high appetite for yield means high appetite for risk.”The global economy is in a better place than in October, when the IMF published its latest forecasts, and central banks have done what they can to support growth so it’s up to governments to step up, Georgieva said.Germany Must Spend Cash More Quickly: AKK (8 a.m.)Germany needs to speed up the process of spending government funds, and surplus cash should be invested “sensibly” in infrastructure and the military, according to German Defense Minister Kramp-Karrenbauer.“If we look at our budget and our investment right now, then we see that we have no problem with money, we have enough money,” Kramp-Karrenbauer, who is also the head of Chancellor Merkel’s party, said in an interview with Bloomberg TV.“The problem is that we are too slow and too complicated in the process. Not enough is invested as a result and this is the construction site we need to work on,” she said.Merkel’s government agrees that surpluses “shouldn’t be tucked away for a rainy day” but instead directed toward “investment in technologies of the future, in our infrastructure,” Kramp-Karrenbauer added.Coronavirus Only ‘Real Threat’ to Markets: Prince Max (7:45 a.m.)There is nothing “really threatening” on the horizon for markets, with the possible exception of the coronavirus, according to Prince Max von und zu Liechtenstein, chief executive officer of LGT Group Foundation.“I think there is a little bit more downside risk than upside chances,” Prince Max said in an interview with Bloomberg TV. “But the market has been resistant so hopefully we will enjoy a good market for a little bit longer.”LGT is hoping for the long-term trend of negative rates to eventually reverse, Prince Max added. “But realistically our expectations for this year for a significant rate change is not there,” he said. “So we are not too optimistic on that front.”\--With assistance from John Follain, Birgit Jennen, Craig Stirling, Cagan Koc, Yuliya Fedorinova, Javier Blas, Fergal O'Brien, Oliver Sachgau, Patrick Donahue, Jenny Leonard, Saleha Mohsin, Viren Vaghela, Haslinda Amin, Francine Lacqua, William Horobin, Reema Alothman, Matthew Martin, Philip J. Heijmans, Sotiris Nikas, Nikos Chrysoloras and Doug Alexander.To contact the reporters on this story: Iain Rogers in Berlin at irogers11@bloomberg.net;Chris Reiter in Berlin at creiter2@bloomberg.netTo contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net;Simon Kennedy at skennedy4@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Moody's

    Plaza Trust -- Moody's Canadian ABCP activity for week ended January 17, 2020

    Moody's has reviewed the following ABCP programs in conjunction with the proposed amendments. At this time the amendments, in and of themselves, will not result in any rating impact on the respective program's ABCP. Moody's does not believe they will have an adverse effect on the credit quality of the securities such that the Moody's rating is impacted.

  • Moody's

    Colorado Housing & Fin. Auth. Single Fam. Mtg -- Moody's assigns Aaa(sf)/VMIG 1(sf) to Colorado Housing and Finance Authority's Class I Adjustable Rate Bonds, 2020 Series C-2; outlook stable

    Moody's Investors Service has assigned ratings of Aaa(sf)/VMIG 1(sf) to the Colorado Housing and Finance Authority's ("CHFA" or the "Authority") $37.7 million Single Family Mortgage Bonds, Class I Adjustable Rate Bonds, 2020 Series C-2 (Federally Taxable) (sf). The Aaa(sf) rating on the Class I bonds reflects the bond program's strong portfolio composition, solid loan performance, significantly strong and growing asset to liability overcollateralization as evidenced by a program asset-to-debt ratio (PADR) of 1.25x on Class I Bonds, as well as skilled program management. The VMIG 1(sf) rating is based on the standby bond purchase agreement ("SBPA") provided by Royal Bank of Canada ("RBC" or the "Bank").

  • CS vs. RY: Which Stock Is the Better Value Option?

    CS vs. RY: Which Stock Is the Better Value Option?

    CS vs. RY: Which Stock Is the Better Value Option?

  • Pinterest Soars After Report Shows U.S. Users Eclipsing Snapchat

    Pinterest Soars After Report Shows U.S. Users Eclipsing Snapchat

    (Bloomberg) -- Pinterest Inc. shares rose as much as 13% on Tuesday after a report showed it beat out Snap Inc.’s Snapchat to become the third-biggest social media platform in the U.S.Pinterest had an estimated 82.4 million U.S. users in 2019, a 7.4% gain from the previous year, while Snapchat had 80.2 million users, data tracker eMarketer estimated. Pinterest’s U.S. users are projected to rise 4.4% to 86 million in 2020, the firm said. Facebook and Instagram, both owned by Facebook Inc., hold the top two positions.“While Snapchat has a young core audience that it caters to, Pinterest has a more universal appeal, and it’s made significant gains in a wide range of age groups,” analyst Nazmul Islam said in the report.Pinterest makes the bulk of its revenue from U.S. users and is in the early stages of efforts to boost international ad sales. The stock still hasn’t recovered from losses after a third-quarter revenue miss led to a 17% plunge in November.While some analysts say the company’s third-quarter earnings results hint at saturation in its U.S. market, bulls say the stock remains attractive as it continues to develop its advertisement offerings.Wall Street’s expectations for Pinterest’s fourth-quarter financial results “are reasonable” and user survey results revealed positive trends, RBC Capital Markets analyst Mark Mahaney said in a research note late Monday. The results are due in mid-February.To contact the reporter on this story: Andres Guerra Luz in New York at aluz8@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Jeran WittensteinFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Gold Steadies With U.S., Iran Stepping Back From the Brink

    Gold Steadies With U.S., Iran Stepping Back From the Brink

    (Bloomberg) -- Gold dropped for a second day as the U.S. and Iran stepped back from a deeper military conflict, blunting the appeal of haven assets.The metal, which briefly surpassed $1,600 an ounce on Wednesday, is heading back toward levels it was trading at before the U.S. killed top Iranian general Qassem Soleimani last week. President Donald Trump’s latest remarks suggested tensions were easing and stocks rose across the globe.“Job done,” Rhona O’Connell, head of market analysis for EMEA and Asia at INTL FCStone, said in a note. “The price is now back to where we started.”Gold futures for February delivery fell as much as 1.2% to $1,541 an ounce, about $13 from the last closing price before the U.S. strike. The metal settled 0.4% lower to $1,554.30 at 1:32 p.m. on the Comex in New York, notching the largest two-day decline since early November.Bullion-backed exchange-traded funds also saw a sell-off on Wednesday, with holdings dropping the most since November, according to preliminary data from ETFs tracked by Bloomberg.“Pullback today in gold was expected sooner or later,” George Gero, a managing director at RBC Wealth Management, said Thursday in a note. “Gold had climbed stairs up and took the elevator up and down based on Iran conflict headlines and we are back to basics now which can support gold.”As tensions ease, investors will be weighing the outlook for the U.S. economy and whether any change is likely in monetary policy from the Federal Reserve, which cut rates three times in 2019 before pausing. On Friday, traders will get the latest monthly nonfarm jobs report. Filings for U.S. unemployment benefits fell to a five-week low, according to the latest data released Thursday. And on Wednesday, ADP Research Institute data showed companies added the most jobs in eight months in December.Meanwhile China confirmed that Vice Premier Liu He will travel to Washington to sign the first phase of the trade deal with the U.S. next week, at least temporarily calming fears of an escalating trade war between the world’s two largest economies.Prices may retreat to $1,500 an ounce or possibly even below that over the next couple of months if real yields recover and concerns over global growth ease further, said Macquarie Group Ltd. strategist Marcus Garvey.In other precious metals, silver futures declined on the Comex while platinum rose on the New York Mercantile Exchange. Palladium futures touched a fresh record of $2,114 an ounce earlier Thursday before erasing gains as China reported a second straight annual slump in car sales. The metal is still up about 8% this year.“An ongoing deficit should justify further gains in palladium prices this year,” Metals Focus said in a note Wednesday. “That said, calling the market’s top is tricky given the speed of the rally and the fact that the palladium market is comparatively small and hence relatively inelastic.”\--With assistance from Ranjeetha Pakiam.To contact the reporters on this story: Elena Mazneva in London at emazneva@bloomberg.net;Justina Vasquez in New York at jvasquez57@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Steven Frank, Pratish NarayananFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • Canadian Banks May Restructure Operations to Aid 2020 Earnings

    Canadian Banks May Restructure Operations to Aid 2020 Earnings

    Toronto-Dominion (TD) and Canadian Imperial Bank of Commerce (CM) will likely incur restructuring charges in fiscal 2020 to drive earnings growth, while other Canadian banks might not.

  • Oil Posts First Loss of the Year as Market Awaits Iran Response

    Oil Posts First Loss of the Year as Market Awaits Iran Response

    (Bloomberg) -- Oil fell for the first time this year as traders waited to see whether the clash between Iran and the U.S. would lead to a disruption in Middle East crude supplies.Brent futures fell 0.9% after surging to a three-month high in response to a U.S. airstrike that killed a top Iranian general. While Iran’s semi-official Fars news agency said the Islamic Republic is assessing 13 retaliation “scenarios” against America and the White House ordered additional forces to the Middle East, oil flows out of the region continue unimpeded for now.“It’s difficult for traders to keep buying on the promise of more geopolitical risk” after the Iranian incident, said Michael Loewen, director of commodity strategy at Scotiabank in Toronto.Prices were little changed after the industry-funded American Petroleum Institute said U.S. crude stocks fell nearly 6 million barrels last week, according to people familiar with the matter. If confirmed by government data Wednesday, that would mark the fourth weekly decline. The group also reported that gasoline and distillate stocks expanded by more than 13 million barrels.The oil market has had a turbulent start to 2020 as the U..S. attack -- coming after months of tension between Washington and Tehran, and the strike in September on Saudi Arabia’s Abqaiq processing facility -- reignites fears of conflict in the world’s most important oil producing region. Crude remains about 3% higher since the attack, but it’ll take a major disruption to output to keep prices elevated, according to Goldman Sachs Group Inc. “While there have been no additional barrels taken offline as a result of the rising conflict between the U.S. and Iran, the situation remains ever fluid,” said Michael Tran, commodity strategist at RBC Capital Markets LLC.Brent crude traded 48 cents lower at $68.48 a barrel on the ICE Futures Europe exchange at 4:50 p.m. in New York. The global benchmark ended Monday 0.5% higher after surpassing $70 in intraday trading. West Texas Intermediate futures fell 52 cents to $62.77 on the New York Mercantile Exchange.Crude markets have a comfortable supply cushion should there be a disruption. OPEC is sitting on huge amounts of spare capacity after reducing supplies for most of the past three years, while the U.S. recently reported its first months as a net exporter of petroleum in about seven decades.But oil buyers are wary that Iraq’s entanglement in the dispute could disrupt shipments from OPEC’s second-biggest producer. While there’s been no material threat to output, U.S. President Donald Trump has threatened heavy sanctions against the country if it follows through on a vote by parliament to expel foreign forces. The U.S. defense secretary has since insisted America hasn’t made a decision to leave Iraq.The country, together with Saudi Arabia and Iran, pumped more than 16 million barrels of oil a day last month. Most of their exports leave the Persian Gulf through the Strait of Hormuz, a narrow waterway that Iran has repeatedly threatened to shut down if there’s a war.“The year is starting with what could amount to a big bang of bullish factors and sentiment for oil as geopolitical risk is finally pricing into the market,” analysts Ed Morse and Francesco Martoccia at Citigroup Inc. said in a report. The bank boosted its forecasts for oil prices this year.\--With assistance from Sharon Cho.To contact the reporters on this story: Sheela Tobben in New York at vtobben@bloomberg.net;Grant Smith in London at gsmith52@bloomberg.netTo contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, Catherine Traywick, Mike JeffersFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • Reuters

    RBC has no plans to take any restructuring charges: CEO

    Royal Bank of Canada has no plan to take any restructuring charges, Chief Executive Officer Dave McKay said on Tuesday, following a C$357 million ($274.7 million) charge that Bank of Montreal took in the fourth quarter. "If we were to take a restructuring charge, we would have taken it in Q4," McKay said at the RBC Canadian Bank CEO conference.

  • Tesla’s Model 3 Is the Only EV Doing Real Volume in the U.S.

    Tesla’s Model 3 Is the Only EV Doing Real Volume in the U.S.

    (Bloomberg) -- If automakers learned anything from 2019, it’s that the have and have-nots of the U.S. electric-vehicle market are Tesla Inc.’s Model 3 -- and everything else.The Model 3 sold in serious volume, with website InsideEVs.com estimating almost 160,000 sales for the year. Other automakers investing billions to roll out electric models have serious catching up to do.After the Model 3, one has to scroll far down the sales rankings to find Tesla’s Model S and X and offerings from General Motors Co. and Nissan Motor Co. And 2019 was a year to forget for the Chevrolet Bolt and Nissan Leaf, with deliveries dropping 8.9% and 16%, respectively.And what of those pricey European models that are supposed to challenge Elon Musk? Porsche is just starting to sell the much-hyped Taycan and handed over the first 130 units in December. Audi sold 746 of its all-electric e-tron crossovers and tallied just 5,369 units for the year. Jaguar was even further behind, delivering 2,594 I-Pace SUVs.To give Musk a more-serious run for his money, automakers are probably going to need models with longer range before plugging in and charging. Even then, the controversial chief executive officer may still have a leg up by building an allure around the company.“Perhaps Tesla’s best asset is its brand,” Joe Spak, an analyst at RBC Capital Markets, wrote in a report Friday. “Many consumers are evangelical about their vehicles.”(Updates with Porsche, Audi and Jaguar EV sales in the fourth paragraph)\--With assistance from Gabrielle Coppola.To contact the reporter on this story: David Welch in Southfield at dwelch12@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Melinda GrenierFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • Gold Nears Six-Year High as Mideast Tensions Spur Haven Demand

    Gold Nears Six-Year High as Mideast Tensions Spur Haven Demand

    (Bloomberg) -- Gold neared a six-year high after a U.S. airstrike killed one of Iran’s most powerful generals, ratcheting up tensions in the Middle East and driving demand for havens.Bullion rallied as much as 1.6% to $1,553.52 an ounce in the spot market, reaching the highest since September. Platinum futures briefly topped $1,000 an ounce to touch the highest since early 2018 in New York, while silver and other haven assets rose.The strike in Baghdad ordered by President Donald Trump killed Qassem Soleimani, the Iranian general who led the Revolutionary Guards’ Quds force. Iran’s supreme leader vowed “severe retaliation.” The U.S. now plans to add 2,800 troops to the 700 already dispatched to Kuwait.The news helped gold to build on the biggest annual gain in almost a decade, a rally that was driven by a weaker dollar, lower real rates and geopolitical concerns.“Market players are now afraid that this marks another level of escalation in a region that is characterized by tension,” Daniel Briesemann, an analyst at Commerzbank AG, said by phone Friday. “The U.S. airstrike in Iraq, that’s the one and only driver of gold prices today.”Gold for immediate delivery was up 1.2% at $1,546.91 at 2:46 p.m. in New York, taking this week’s gain to 2.5%, the most since August. The metal jumped 18% last year. Futures settled 1.6% higher.Last year’s advance marked a positive shift in investor attitude toward gold, according to RBC Capital Markets, which predicted further gains this year and next. Goldman Sachs Group Inc., Citigroup Inc. and UBS Group AG have said they’re looking for $1,600 an ounce.“Today’s event has probably only brought forward the inevitable test of the September high,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “Rising inflation concerns through higher input prices -- oil and food -- combined with geopolitical uncertainty is a potent cocktail which supports a market already on the move.”January is historically gold’s best month, according to Bloomberg Intelligence commodity strategist Mike McGlone, with an average advance of 2.7% over the past 20 years. The metal will approach $1,600 by February if it matches the 5.2% average increase of the past five years, he said.Still, geopolitics typically doesn’t have a lasting impact on gold unless broader consequences for the economy or financial markets arise, said Carsten Menke, an analyst at Julius Baer.Gold extended gains after the latest U.S. ISM manufacturing data showed the weakest monthly performance since the end of the recession, according to a report Friday. That strengthens the case for owning bullion as a hedge against dimming growth outlook.The purchasing managers’ index fell to 47.2 in December from 48.1, missing estimates for a rise in a Bloomberg survey of economists.Prices held their advance after minutes from Federal Reserve officials’ December meeting showed their monetary policy was likely to remain appropriate “for a time” even amid what they saw as persistent downside risks.Other precious metalsPlatinum futures for April delivery climbed as much as 1.7% to $1,001.40 an ounce on the New York Mercantile Exchange, the highest for a most-active contract since February 2018The price settled 0.5% higherPalladium futures also advanced on the Nymex, while silver futures rose on the Comex(An earlier version corrected a platinum superlative in the second paragraph.)\--With assistance from Justina Vasquez.To contact the reporters on this story: Ranjeetha Pakiam in Singapore at rpakiam@bloomberg.net;Elena Mazneva in London at emazneva@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, ;Luzi Ann Javier at ljavier@bloomberg.net, Nicholas Larkin, Steven FrankFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • Soleimani Strike Isn’t Business as Usual for Oil

    Soleimani Strike Isn’t Business as Usual for Oil

    (Bloomberg Opinion) -- Few outside of Iran will weep at the violent demise of Qassem Soleimani. The oil market, never sentimental, joined those cheering the sudden end of the leader of the Quds Force of the Islamic Revolutionary Guard Corps, albeit for different reasons. Will its peculiar brand of excitement last?One possible clue is the market’s reaction to another major escalation: September’s attack on Saudi Arabia’s Abqaiq oil-processing facility. Brent spiked 15% the next trading day, only to fall below its pre-attack level within about two weeks. Friday’s reaction to Soleimani’s assassination was more muted, and Brent is now below where it closed last week. Having absorbed one game-changing attack that didn’t change the game a few months ago, the oil market appears to think this latest one fits that mold, too.It makes more sense to view them on a continuum rather than as discrete events, though. Like the attack on Abqaiq, Soleimani’s death represents a major escalation in a pattern of them. Geopolitical risk is building by accretion, and at a pace that would have sent oil prices into triple digits not so long ago.That it isn’t now relates largely to the impact of U.S. tight-oil production on inventories and, more importantly, expectations. Supply is seen as abundant enough to absorb whatever comes its way. Shale is just one fundamental change to have ripped through global energy in the past decade. Another is the changing U.S. role in the Middle East as it steps back from supporting the global trade and security order in general (in part because of shale-inspired dreams of “energy dominance”; everything’s connected).This upending of preconceptions about energy and geopolitics is a risk factor in itself.Start with Washington. There is enormous dissonance between President Donald Trump’s long-held position of avoiding more wars and suddenly taking out a figure of Soleimani’s importance. While the attack on Abqaiq amounted to a declaration of war, its effects were largely confined to how quickly a piece of infrastructure could be repaired. The implications of Thursday’s strike are far more open-ended.Some within the U.S. administration may see this as a way to shock Iran into backing off; others might wish to goad Tehran into all-out war to settle scores stretching back through the Iraq War all the way to the hostage crisis. Indeed, the recent attack on the U.S. embassy in Baghdad seems the real trigger for retaliation.Iran’s leadership may also have 1979 in mind. Having just brutally squashed protests at home, Supreme Leader Ali Khamenei will not want to appear weak and risk encouraging the sort of dissent that felled the Shah. With the economy reeling from sanctions — it shrank by more than 9% last year — “the Iranians have almost nothing to lose at this point,” says Helima Croft, head of global commodity strategy and research for the region at RBC Capital Markets. Retaliation, even if it invites further retribution, seems inevitable.What form that takes is also unclear and likely multi-pronged. One battlefield will be the country where Soleimani was killed: Iraq. Any disruption to oil operations there should register immediately with the market. Iraq was by far the least compliant of any OPEC member in terms of supply cuts last year. If it were to tip into OPEC’s select club of involuntary cutters alongside Venezuela and Libya, then it would boost the group’s effort to support prices. Besides the potential for violence, an Iraqi government caught between Washington, Tehran and its own domestic unrest may push to remove the last of the U.S. military presence from the country. It’s far from clear Washington would resist much, given Trump’s broader desire to disengage.We also shouldn’t forget the rest of the neighborhood. Saudi Arabia and the Gulf states all host U.S. troops Iran might target (along with shipping in the Strait of Hormuz). Any such action would likely spark retaliation in kind. Saudi Arabia, in particular, has the Abqaiq attack fresh in its memory, and the U.S. decision to kill a seemingly untouchable Iranian military leader might embolden Iran’s regional rival to step up its own response.The final piece of the puzzle is thousands of miles from Baghdad. Geopolitical premiums in oil are essentially free money for U.S. exploration and production companies. The sector has been crushed by the late realization that the past decade’s stupendous gains in production came at the expense of investors (see this).A big question arising from the latest trouble in the Middle East is whether higher oil prices blunt the impulse to be more disciplined on drilling. Nymex crude oil swaps for 2020 have leapt back above $60 a barrel, higher than they got in the wake of the Abqaiq attack and back to levels seen in May, before the big summer sell-off. The potential for hedging, along with the fact that the most leveraged E&P stocks topped the sector leaderboard on Friday morning, suggests the temptation to backslide is there, at least.Since the Abqaiq attack, sentiment in oil markets has been bolstered by the OPEC+ meeting and signs of a thaw in the U.S. trade war with China. The latter is especially important, as it would underpin demand; whereas controlled cuts from OPEC+, while cosmetically appealing, are also manifestations of a fundamentally loose market. Uncontrolled cuts, taking oil supply off the market altogether, are a different matter. Continued escalation in the Middle East could push oil out of its prevailing range toward $80. Much depends on the newfound discipline of U.S. producers.Beyond this, consider the bigger picture. Having shrugged off numerous provocations, including Abqaiq, Washington decided to retaliate now and with unexpected ferocity. A broad policy of stepping back, pre-dating Trump, invited Iranian adventurism; and yet the U.S. has demonstrated that, even with a much-reduced presence, it can deploy enough force to upend things if it chooses. Besides climate change, the single biggest risk to the oil market is its reliance on a fractious region where U.S. security relationships were one of the relative constants. Now, Washington is more of a spoiler, and a capable one at that. Soleimani’s explosive end is the opposite of business as usual.To contact the author of this story: Liam Denning at ldenning1@bloomberg.netTo contact the editor responsible for this story: Mark Gongloff at mgongloff1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2020 Bloomberg L.P.

  • AMD Hits All-Time High, Taking Out Record That Stood Since 2000

    AMD Hits All-Time High, Taking Out Record That Stood Since 2000

    (Bloomberg) -- Advanced Micro Devices Inc. shares rallied on Thursday, with the stock hitting an intraday record -- the chipmaker’s first such milestone in nearly two decades.The stock gained as much as 5.8% to hit $48.53, surpassing what had been its intraday record of $48.50, touched on June 5, 2000, according to data compiled by Bloomberg. Shares were also on track for an all-time closing high, also their first since 2000.The return to record levels is just the latest move higher for AMD, which spiked almost 150% over the course of 2019, making it the biggest percentage gainer among S&P 500 components. Shares have gained more than 70% since a recent low in October.Thursday’s advance came after Nomura Instinet raised its price target on the stock to $58 from $40, touting the company’s prospects in the new year. Analyst David Wong expects AMD will “continue strengthening its competitive position in 2020,” seeing tailwinds from new products, higher market share and increases in average selling prices.Nomura is the latest example of growing analyst optimism. Earlier this week, Rosenblatt Securities boosted its own target to a Street-high view of $65 and named AMD its top semiconductor pick for 2020. This year “will continue the early momentum in CPU share gains,” wrote Hans Mosesmann, seeing “limited competitive threats slowing the momentum train.” RBC Capital Markets and Wedbush have also recently touted the company’s prospects.The average price target stands at nearly $37, up from about $22 in January 2019. Currently, 15 analysts recommend buying the stock, compared with the 23 firms tracked by Bloomberg that have a hold-equivalent rating. Four firms recommend selling the name, the fewest number in more than a year.AMD’s 2019 rally was due in large part to optimism surrounding new products. It unveiled the latest generation of its Ryzen desktop processor in May, news that was followed by the August announcement of a new server processor. Both were seen as heightening AMD’s competitive edge over Intel Corp. AMD also announced that it would be the main chip vendor for an upcoming Microsoft Corp. video-game console.A test for AMD shares will come later this month, when it is expected to report its fourth-quarter results. Wall Street is expecting adjusted earnings to nearly quadruple from the year-ago period, while revenue spikes almost 50%, according to Bloomberg data.To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven FrommFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • Gold Registers Best Week Since August After Rally Gathers Pace

    Gold Registers Best Week Since August After Rally Gathers Pace

    (Bloomberg) -- Gold registered its biggest weekly advance in more than four months, with a decline in the dollar boosting demand for the metal as an alternative asset.The greenback slipped versus all of its Group-of-10 peers, on track to erase its 2019 gains. The metal, which has gained 18% this year, is getting help from easier monetary policy across the world’s leading economies and sustained buying from exchange-traded funds and central banks.Gold topped $1,500 an ounce this week on the way to its best year since 2010, helped by bets that simmering trade and geopolitical tensions will spur further gains for the metal in 2020. With the Federal Reserve expected to keep interest rates steady next year following three reductions in 2019, most traders and analysts in a weekly Bloomberg survey were bullish.“Gold continues in its new trading range of $1,480-$1,530, supported by investors looking into next year’s upcoming political, economic and trade and tariff headlines,” George Gero, a managing director at RBC Wealth Management, said in an emailed note.Gold futures for February delivery rose 0.2% to settle at $1,518.10 an ounce at 1:30 p.m. on the Comex in New York, after touching $1,519.90, the highest since Oct. 25. Prices are up 2.5% this week, the biggest weekly gain since Aug. 9.Spot gold also headed for the biggest weekly gain since August.Read More: Gold’s Santa Rally Is Recurring Year-End Gift That Keeps GivingStill, trading volumes are low, “warning that the magnitude of these moves might owe more to illiquidity than conviction,” DailyFX strategist Ilya Spivak said. “It will be interesting to see what happens as overall market participation rebuilds in January.”In other precious metals, Comex silver slipped, while on the New York Mercantile Exchange platinum futures fell and palladium rose. All three posted weekly gains.\--With assistance from Elena Mazneva.To contact the reporters on this story: Yvonne Yue Li in New York at yli1490@bloomberg.net;Ranjeetha Pakiam in Singapore at rpakiam@bloomberg.netTo contact the editors responsible for this story: Phoebe Sedgman at psedgman2@bloomberg.net, ;Lynn Thomasson at lthomasson@bloomberg.net, Joe Richter, Millie MunshiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Oil Rises to Three-Month High on Supply and Trade Optimism

    Oil Rises to Three-Month High on Supply and Trade Optimism

    (Bloomberg) -- Oil advanced in light trading, with prices set for the biggest monthly gain in almost a year on speculation that supplies are shrinking.Futures rose 0.9% in New York, gaining for a third straight session as trading resumed after the Christmas break. Prices are up almost 12% this month, and have reached the highest level since mid-September. The American Petroleum Institute reported that U.S. stockpiles dropped 7.9 million barrels last week.The inventory decrease would be the largest since August if confirmed by government data on Friday. A median forecast of nine analysts in a Bloomberg survey predicts a smaller drop of 1.5 million barrels. Meanwhile, Russia reduced production by 240,000 barrels a day in the first 24 days of December, Interfax reported, citing Energy Minister Alexander Novak.Oil has surged about 36% so far this year, with prices recently supported by a breakthrough in the trade impasse between the the world’s top two economies. Futures have also been boosted by output cuts made by the Organization of Petroleum Exporting Countries and its allies.Hedge funds boosted bets on rising U.S. crude prices to the highest level in more than seven months during the week ended Dec. 17, data released Friday show.“Like the stock market, a lot of economic optimism is getting priced in,” said Phil Flynn, senior markets analyst at Price Futures Group. “With a lot of things happening come the 1st of January, you really don’t want to be short.”West Texas Intermediate for February delivery climbed 57 cents to settle at $61.68 a barrel on the New York Mercantile Exchange. Markets were shut Wednesday for Christmas.Brent for February settlement rose 72 cents to close at $67.92 a barrel. Prices are up 8.8% so far this month. The spread between the global benchmark crude and WTI was at $6.24, the widest since June.Chinese data on Wednesday showed imports of U.S. soybeans surged to the highest in about two years, while American President Donald Trump said a trade pact between the two nations is “done.” He added the two sides are working on translation and paperwork, suggesting a deal would be signed before a meeting with his Chinese counterpart Xi Jinping.\--With assistance from Sharon Cho and Dina Khrennikova.To contact the reporter on this story: Kriti Gupta in New York at kgupta129@bloomberg.netTo contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Catherine Traywick, Simon CaseyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • What Does Royal Bank of Canada's (TSE:RY) Share Price Indicate?
    Simply Wall St.

    What Does Royal Bank of Canada's (TSE:RY) Share Price Indicate?

    Royal Bank of Canada (TSE:RY) saw its share price hover around a small range of CA$104 to CA$109 over the last few...

  • Moody's

    King Street Funding Trust -- Moody's Canadian ABCP activity for the week ended December 20, 2019

    Moody's has reviewed the following ABCP programs in conjunction with the proposed additions and amendments. At this time the additions and amendments, in and of themselves, will not result in any rating impact on the respective program's ABCP. Moody's does not believe they will have an adverse effect on the credit quality of the securities such that the Moody's rating is impacted.

  • Memory Chipmakers Rally as Analysts Grow Confident on Rebound

    Memory Chipmakers Rally as Analysts Grow Confident on Rebound

    (Bloomberg) -- Semiconductor companies that focus on memory-related chips rallied on Monday, as optimism continued that the product category was poised for a rebound.“We believe we are just now entering another recovery cycle, and see more upside as DRAM price recovery begins in earnest,” wrote Charles Park, an analyst at Mizuho Securities who was referring to one of the two major types of memory chips, along with NAND products.The firm sees a “once in a 4 year opportunity” to buy memory at the bottom of the cycle, adding that “an appeal to investing in the memory sector is the potential for a significant share price increase.” According to the firm, shares of Micron Technology “rose 6-7x each time over the past three recovery cycles.”Shares of Micron jumped as much as 6.1% on Monday and were trading at their highest level since mid-2018. Western Digital Corp. gained as much as 7.4%. Both were on track for their fifth straight positive session, and both outperformed the broader Philadelphia Semiconductor Index, which rose 1.5% to record levels on Monday.The pair’s outperformance has been a trend in the past six months. Over that period, Micron has soared almost 65%, while Western Digital is up more than 55%. The industry benchmark has gained about 35% over the same period.In addition to Mizuho’s comments, both Western Digital and Micron were upgraded at Susquehanna Financial Group on Monday, with the firm citing higher confidence in a recovery for NAND prices. Separately, Morgan Stanley raised its Micron price target, writing that there was “clearly improvement” in the memory space, adding that it was “likely to sustain for a quarter or two.”Longbow Research, which has buy ratings on both Micron and Western Digital, wrote that its latest checks on memory products were “mixed-to-positive, reflecting a continued rebound in NAND fundamentals and a recent stall in DRAM.” That DRAM headwind, analyst Nikolay Todorov wrote, “will be relatively short-lived,” as spot prices for both DRAM and NAND “are showing signs of inflection.”According to data compiled by Bloomberg, more than 65% of Micron’s 2019 revenue was derived from DRAM products, while an additional 29.7% came from NAND products.The growing optimism comes ahead of the Dec. 18 release of Micron’s first-quarter results. Western Digital’s next quarterly report is expected to come in late January.The comments were merely the latest in a series of optimistic commentary about the product category. Last week, RBC Capital Markets wrote that it was “officially calling the bottom on memory pricing,” expecting the sector would be past inventory issues by the end of the year.To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Russia Raids Office of U.S. Web Server Giant in Copyright Clash

    Russia Raids Office of U.S. Web Server Giant in Copyright Clash

    (Bloomberg) -- Russian police raided the offices of Nginx Inc., a U.S. company behind one of the largest web server projects, and briefly detained its founder in a case that could stoke renewed fears of law enforcement being used to settle corporate disputes.Russia’s Rambler Group, the parent company of one of the country’s biggest search engines and internet portals, said in a statement Thursday it uncovered copyright violations to its exclusive rights to Nginx, which was acquired by Seattle-based F5 Networks Inc. this year in a deal that valued the company at $670 million.The dispute centers around the development of Nginx’s original open-source web server code by Igor Sysoev when he worked at Rambler nearly two decades ago, so Rambler sees itself as the rightful owner of the code. Nginx was first released publicly in 2004. It now controls more than 30% of the server market for web-facing computers, behind only the Apache Foundation, according to Netcraft, which monitors the industry.The raid is the latest example of the widespread use of Russian law enforcement in corporate disputes. U.S. investor Michael Calvey, one of the most successful private equity investors in Russia, was jailed this year and remains under house arrest over what he claims is a business conflict.Maxim Konovalov, who co-founded Nginx Inc. in 2011, linked the raid to the May sale of the company. He and his partner Sysoev were briefly detained during the Thursday raids of their apartments and the company’s Moscow office.“We fear for our freedom,” Konovalov said by phone. “Rambler didn’t pay attention to us in the preceding years.” Konovalov said he and Sysoev are “not going to flee Russia. We will stay and we will fight.”Igor Ashmanov, who was an executive at Rambler when Sysoev worked there, said Sysoev had started developing the technology underlying Nginx before he joined the company. Sysoev left Rambler in 2011 to co-found Nginx. The company is based in San Francisco but has offices around the world.Yandex NV, Russia’s biggest tech company, called the raid a “very bad signal.” Several IT industry associations condemned the action, according to an open letter published on the Govorit Moskva radio station’s website.Rambler, owned by billionaire Alexander Mamut and Sberbank PJSC, said it ceded its rights to Nginx to a Cyprus-owned holding company, Lynwood Investments CY Ltd.Lynwood is controlled by Mamut’s son Nikolai, according to Interfax news agency.Lynwood said by email it informed law enforcement about the situation and the authorities opened up a criminal case. The company declined to comment on its ownership.F5 and the police did not immediately respond to requests for comment.Sberbank First Deputy Chief Executive Lev Khasis, who is the chairman of Rambler’s board, said he found out about the dispute via media reports and has requested an extraordinary board meeting this month to deal with it.“I don’t like that this is a criminal trial,” Sberbank Chairman Herman Gref told Forbes, adding that this is a case for the arbitration court.Despite pledges from President Vladimir Putin to better protect business from inappropriate pressure from law enforcement, it remains a common tool to settle commercial disputes in Russia.A survey by the Kremlin’s business ombudsman found 84% of business executives who are subject to criminal investigations end up losing part or all of their business, RBC reported earlier this year.\--With assistance from Anna Baraulina and Ilya Arkhipov.To contact the reporters on this story: Stepan Kravchenko in Moscow at skravchenko@bloomberg.net;Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.netTo contact the editors responsible for this story: Torrey Clark at tclark8@bloomberg.net, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Oracle’s Need for ‘Steep’ Sales Climb Leaves Street Cautious

    Oracle’s Need for ‘Steep’ Sales Climb Leaves Street Cautious

    (Bloomberg) -- Oracle Corp. slumped Friday after the company’s quarterly sales trailed expectations. Analysts say forecasts suggest a sharp growth acceleration in the fiscal fourth quarter is needed to meet the company’s year-end target.The culprit for the consolidated sales miss was a shortfall in license revenue brought on by continued effects of a sales reorganziation earlier this year, as well as “price discipline,” according to RBC’s Alex Zukin and other sell-side analysts.Fourth-quarter fiscal 2020 faces the most difficult year-ago comparison (4% growth in constant currency) since the company’s second quarter of fiscal 2018. And the environment is tough, Deutsche Bank added.Shares of Oracle fell as much as 3.5%, the biggest intraday decline since Sept. 12. The stock has gained 22% year to date, underperforming both the S&P 500 and its large-cap tech peers.Here’s more of what analysts said following the report:Raymond James, Michael Turits“The company evinced confidence in second half momentum, which it expects to carry into F21 around back office applications (HCM/ERP), cloud @ customer deployments, new versions of Autonomous Database, and diminishing headwinds from data cloud decline”Management also indicated that the second half benefits from transactional (license/hardware) businessTurits believes that for Oracle to see fiscal 2020 constant-currency acceleration following the “slight” misses in the second-quarter actual sales figure and the third-quarter forecast “would mean an extremely steep back half ramp”Given the current set up, the analyst believes that fiscal 2020 revenue growth will decelerate to 2.2% on a constant-currency basisEstimates 2.9% growth for next year, “as the drivers above continue to play out”Rates outperformWhat Bloomberg Intelligence says:“While management commentary about the increased use of Oracle’s new autonomous database product is encouraging with 2,000 new customers and triple-digit growth, weak total license sales shows that clients are taking time to spend more on other new products,” wrote analyst Anurag Rana.Rana doesn’t see this trend changing in the near-term given weakening global macroeconomic conditions that “could even hurt cloud applications sales.”Wedbush, Steve Koenig“We attribute the miss to database license headwinds from a first-quarter tech sales reorg -- which separated cloud and premise sales and likely resulted in smaller deal sizes -- and declining sales of vertical applications licenses”Management was upbeat on prospects for the second half, as large autonomous database transactions get recognized this fiscal year and cloud database velocity picks up, Koenig saidNoted “longer term, these prospects seem promising, but we suspect that any uptick in FY20 year-end tech segment performance would be mostly seasonality (much like in FY19), and a secular upturn in ORCL’s tech segment is likely many more quarters in the offing”The analyst is “more convinced” of Oracle’ progress in cloud applications than cloud infrastructureMaintains neutral rating, as he looks for “meaningful progress” in rebooting database growth on a more sustained basis; price target $56 from $55Deutsche Bank, Karl KeirsteadThe third-quarter forecast for just 1% to 3% constant-currency sales growth implies “a huge growth acceleration” in the fourth quarter “against a very tough compare and in a tougher environment” in order for the full-year to reach Oracle’s forecastKeirstead remains “skeptical about any sustainable growth acceleration”Rates holdTo contact the reporter on this story: Janet Freund in New York at jfreund11@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • RBC to sell Eastern Caribbean operations to group of regional banks

    RBC to sell Eastern Caribbean operations to group of regional banks

    The group of buyers consists of 1st National Bank of St. Lucia, Antigua Commercial Bank Ltd, National Bank of Dominica Ltd, the Bank of Montserrat and Bank of Nevis Ltd. RBC's move comes a month after Canadian Imperial Bank of Commerce (CIBC) sold a significant portion of its majority stake in CIBC FirstCaribbean to GNB Financial Group for $797 million.. In September, Bank of Nova Scotia said it was in the final stages of closing deals to sell portions of its Caribbean operations.

  • Hedge Funds Have Never Been More Bullish On Royal Bank of Canada (RY)
    Insider Monkey

    Hedge Funds Have Never Been More Bullish On Royal Bank of Canada (RY)

    After several tireless days we have finished crunching the numbers from nearly 750 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms' equity portfolios as of September 30th. The results of that effort will be put on display in this article, as […]